Russia - Taxation

Personal income tax in Russia is currently payable at a flat rate of 13% for residents, defined as anyone living in Russia for at least 183 days in any calendar tax year, and 30% for non-residents. All employees and self-employed people are liable for tax.

Permanent residents are required to pay tax on their earnings in Russia and overseas, while non-residents working in Russia only have to pay tax on their income earned in Russia.

Russian companies are required by law to deduct employee tax direct from salaries, but foreign companies are exempt from this requirement, and their employees may have to file their own tax returns and make payments. The self-employed have to make advance tax payments several times each year, which are adjusted on the basis of their tax returns.

Tax declaration forms can be downloaded from the website of the Moscow Tax Inspectorate, and are also available at the offices of the Inspectorate. All foreign nationals working in Russia should submit a copy of their passport with their tax return, as well as a completed 2-NDFL form with details of their income in Russia. There is no legal requirement to provide evidence of overseas earnings, but officials may ask for these.

Corporate tax is payable at a flat rate of 24%.

Capital Gains tax for individuals is set at the same rate as personal income tax: 13% for residents and 30% for non-residents. If real estate or other assets are sold after ownership of 3 years or more, the profits are tax-exempt.